Shaw 2013 Annual Report Download - page 34

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S
haw
C
ommunications Inc
.
MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
S
August
,
i
ncome tax assets based on
f
orecasts o
f
taxable
i
ncome o
ff
uture
y
ears, ex
i
st
i
n
g
tax laws an
d
t
ax planning strategies. Significant changes in assumptions with respect to internal forecasts o
r
t
he inability to implement tax planning strategies could result in future impairment of these
assets.
ix) Commitments and contingencie
s
The
C
om
p
an
yi
s sub
j
ect to var
i
ous cla
i
ms and cont
i
n
g
enc
i
es related to lawsu
i
ts, taxes an
d
commitments under contractual and other commercial obligations. Contingent losses are
recognized by a charge to income when it is likely that a future event will confirm that an asse
t
h
as been
i
m
p
a
i
red or a l
i
ab
i
l
i
t
yi
ncurred at the date o
f
the
fi
nanc
i
al statements and the amoun
t
can be reasonably estimated. Contractual and other commercial obligations primarily relate t
o
n
etwork fees, program rights and operating lease agreements for use of transmission facilities
,
i
nclud
i
n
g
ma
i
ntenance o
f
satell
i
te trans
p
onders and lease o
fp
rem
i
ses
i
n the normal course o
f
bus
i
ness.
Si
gn
ifi
cant changes
i
n assumpt
i
ons as to the l
i
kel
i
hood and est
i
mates o
f
the amount
o
f a loss could result in recognition of additional liabilities.
G. Related
p
art
y
transaction
s
R
elated party transact
i
ons are rev
i
ewed by
S
haw’s
C
orporate
G
overnance and Nom
i
nat
i
n
g
Committee, comprised of independent directors. The following sets forth certain transactions in
wh
i
ch the
C
om
p
an
yi
s
i
nvolved
.
C
oru
s
The
C
om
p
an
y
and
C
orus are sub
j
ect to common vot
i
n
g
control. Dur
i
n
g
the
y
ear, network,
advert
i
s
i
ng and programm
i
ng
f
ees were pa
i
d to var
i
ous
C
orus subs
i
d
i
ar
i
es. The
C
ompany
provided uplink of television signals, programming content, Internet services and lease o
f
c
i
rcu
i
ts to var
i
ous
C
orus subs
i
d
i
ar
i
es. In add
i
t
i
on, the
C
om
p
an
yp
rov
i
ded
C
orus w
i
th telev
i
s
i
on
advert
i
s
i
ng spots
i
n return
f
or rad
i
o and telev
i
s
i
on advert
i
s
i
ng.
The Company also entered into a number of transactions with Corus to optimize its portfolio o
f
s
p
ecialt
y
channels. Shaw a
g
reed to sell to Corus its 49% interest in ABC S
p
ark and 50%
i
nterest
i
n
i
ts two French-lan
g
ua
g
e channels, H
i
stor
i
a and
S
er
i
es+. In add
i
t
i
on,
C
orus a
g
reed t
o
sell to Shaw its 20% interest in Food Network Canada. The ABC Spark and Food Networ
k
Canada transactions closed during the year while Historia and Series+ are expected to close i
n
fisca
l
201
4
.
Burrard Landing Lot 2 Holdings Partnershi
p
The
C
om
p
an
y
has a
33
.
33% i
nterest
i
n the Partnersh
ip
. Dur
i
n
g
the current
y
ear, the
C
om
p
an
y
paid the Partnership for lease of office space in Shaw Tower. Shaw Tower, located i
n
V
ancouver, BC, is the Company’s headquarters for its lower mainland operations.
Sp
ecialt
y
channel
s
The Company either currently holds or previously held interests in a number of specialt
y
t
elev
i
s
i
on channels wh
i
ch are e
i
ther sub
j
ect to
j
o
i
nt control or s
ig
n
ifi
cant
i
n
f
luence,
i
nclud
i
n
g
H
istoria and Series+. During the current year the Company paid network fees and provided
u
plink of television signals to these channels
.
Ke
y
mana
g
ement
p
ersonnel and Board of Director
s
K
e
y
mana
g
ement
p
ersonnel consist of the most senior executive team and alon
g
with the Board
of
D
i
rectors have the author
i
t
y
and res
p
ons
i
b
i
l
i
t
yf
or d
i
rect
i
n
g
and controll
i
n
g
the act
i
v
i
t
i
es o
f
30